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Chapter 3 Answers 2. Prob. 3–2B 1. a. Supplies Expense 2,620 Supplies 2,620 Supplies used ($3,170 – $550). b. Depreciation Expense 1,675 Accumulated Depreciation—Equipment 1,675 Depreciation for year. c. Rent Expense 8,500 Prepaid Rent 8,500 Rent expired. d. Wages Expense 2,000 Wages Payable 2,000 Accrued wages. e.

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3-4 ANSWERS TO QUESTIONS 1. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods. (b) An accounting time period of one year in length is referred to as a fiscal year. A fiscal year that extends from January 1 to December 31 is referred to as a calendar year.

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Chapter 1 Introduction to Accounting and Business; Chapter 2 Analyzing Transactions; Chapter 3 The Adjusting Process; Chapter 4 Completing the Accounting Cycle; Chapter 5 Accounting Systems; Chapter 6 Accounting for Merchandising Business ; Chapter 7 Inventories; Chapter 8 Internal Control and Cash; Chapter 9 Receivables; Chapter 10 Long-Term Assets: Fixed and Intangible …